By: L.N. Reklai
KOROR, Palau (August 17, 2026) – Palau’s tourism sector is showing a stronger and more resilient recovery in 2026, with visitor arrivals through July up 27% from the same period last year and several key markets recording double-digit growth.
Palau welcomed 51,040 visitors from January through July 2026, compared with 40,339 during the first seven months of 2025, according to the Palau Visitors Authority’s July 2026 visitor arrival report.
The improvement contrasts with 2025, when arrivals weakened after a strong June and remained softer through much of the second half of the year. In 2026, arrivals also dipped in June to 5,925 but rebounded to 6,963 in July, indicating stronger mid-year resilience.
China remains Palau’s largest source market, accounting for 36% of January-July arrivals. Taiwan followed with 17%, while Japan and USA/Canada each represented 14%. Europe accounted for 7%, Australia 5%, South Korea 2% and other markets 6%.
Japan has been the standout growth market, with arrivals up 80% year over year through July. Australia rose 68%, South Korea 57% and China 46%. Europe increased 11%, while Taiwan and USA/Canada posted more modest gains of 4% and 2%, respectively.
The growth reflects both stronger demand and improved air connectivity. United Airlines now operates 10 scheduled flights a week to Koror, including two direct Tokyo-Narita flights introduced in October 2025. China Airlines increased Taiwan service to four flights a week, while Philippine Airlines began twice-weekly Manila-Koror service in March. Qantas continues weekly Brisbane service, while charter links from Hong Kong and Macau support Asian arrivals.
The new Japan service appears particularly important as Palau works to rebuild one of its traditional tourism markets. PVA has supported the Narita route through Japanese marketing and a media familiarization campaign designed to increase awareness and seat occupancy.
China’s growth is also significant because it remains Palau’s largest market. July arrivals included 2,776 Chinese visitors, followed by 1,451 from Taiwan, 1,174 from USA/Canada and 771 from Japan.
Connectivity, however, remains a factor to watch. The Brisbane-Nauru-Tarawa-Majuro-Pohnpei-Palau Island Hopper service ceased in June, while several other scheduled and charter services remain suspended.
Still, the current trajectory points to a stronger year-end performance than 2025. If the January-July average of about 7,300 arrivals per month were sustained, Palau would approach 87,500 visitors for 2026. That is a simple pace-based projection, not an official forecast, and actual arrivals will depend on seasonal demand, flight capacity and market conditions.
A major boost is expected in late August and early September when Palau hosts the 55th Pacific Islands Forum Leaders Meeting from Aug. 30 to Sept. 4. The regional gathering is expected to bring leaders, officials, media and other participants to Koror, adding a significant temporary lift to visitor traffic.
With broad-based growth, expanded air links and the Forum meeting ahead, Palau enters the final months of 2026 with a more favorable tourism outlook than it had at the same point last year.
